Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Nestle says 2014 will be another challenging year amid weak emerging markets

Nestle's CEO Paul Bulcke, speaks during the presentation of the results of 2013 of Nestle Group, in Vevey, Switzerland, Thursday, Feb. 13, 2014. Nestle, the world's biggest food and drink company, says it expects 2014 to be just as challenging as last year amid weaker growth in emerging markets along with falling prices and deflationary pressure in Europe. The Vevey, Switzerland-based company says it expects improvement in the second half and about 5 percent organic sales growth for 2014, which does not reflect acquisitions and currency fluctuations. Nestle's statement Thursdaysaid 2013 net profit fell to 10 billion Swiss francs (US $11.1 billion), down from 10.6 billion francs in 2012. (AP Photo/Keystone, Maxime Schmid).

Enlarge Image

Nestle's CEO Paul Bulcke, speaks during the presentation of the results of 2013 of Nestle Group, in Vevey, Switzerland, Thursday, Feb. 13, 2014. Nestle, the world's biggest food and drink company, says it expects 2014 to be just as challenging as last year amid weaker growth in emerging markets along with falling prices and deflationary pressure in Europe. The Vevey, Switzerland-based company says it expects improvement in the second half and about 5 percent organic sales growth for 2014, which does not reflect acquisitions and currency fluctuations. Nestle's statement Thursdaysaid 2013 net profit fell to 10 billion Swiss francs (US $11.1 billion), down from 10.6 billion francs in 2012. (AP Photo/Keystone, Maxime Schmid).

GENEVA - Nestle, the world's biggest food and drinks maker, said Thursday it expects 2014 to be just as challenging as last year amid falling growth in emerging markets and weaker prices in Europe.

The maker of Nescafe, Perrier, Jenny Craig and Haagen Dazs is a major buyer of food commodities such as wheat, sugar, and milk and its results are a good indicator of the strength of consumer demand around the world.

Nestle's shares fell 1.49 per cent to close at 66.10 Swiss francs on the Zurich exchange Thursday.

Nestle, based in Vevey, Switzerland, said that after a weak 2013, it expects an improvement only in the second half of 2014. Organic sales, which do not reflect acquisitions and currency fluctuations, are expected to grow about 5 per cent next year.

Its net profit in 2013 fell to 10 billion francs ($11.1 billion), from 10.6 billion francs in 2012. In 2011, it made a profit of 9.5 billion Swiss francs.

"The macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets," CEO Paul Bulcke said. "Last year was challenging and 2014 will likely be the same."

He said this year would likely again see improvement "weighted to the second half." Nestle, like other food companies, is facing slowing demand in emerging markets and in Europe, where many customers are adjusting to government austerity measures.

In 2013, Nestle's overall sales grew by 2.7 per cent to 92.2 billion francs, kept back by the impact of shifting foreign exchange rates. It said organic sales growth was 4.6 per cent.

Nestle's aim every year for 5-6 per cent organic growth and improvements in its trading operating profit margin, underlying earnings per share and capital efficiency.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates